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LONDON - Jangada Mines plc (AIM:JAN.L) has conditionally completed the acquisition of a 33.3% equity interest in MTgold Mineração LTDA, owner of the Paranaíta Gold Project in Brazil’s Alta Floresta-Juruena Gold Province, according to a press release issued Monday.
The acquisition costs £1 million in new Jangada shares and £250,000 in cash. The company has scheduled a general meeting for August 19 to seek shareholder approval for issuing the new shares, which will be subject to a 12-month lock-up period. Jangada also secured an option to increase its stake to 50.1% through the issuance of an additional £500,000 in shares.
The 7,211-hectare Paranaíta project features 15 primary high-grade gold occurrences along an 8 km east-west mineralized corridor. The project currently has an internally generated resource estimate of approximately 210,000 ounces of gold at a grade of 3.165 g/t, compliant with Brazilian standards.
Previous exploration work valued at approximately $2 million includes 1,756 meters of diamond drilling, with results including intersections of 5.0 meters at 5.48 g/t gold. The company plans to implement a new exploration program including geophysics, trenching, drilling, and metallurgical testing to expand the resource.
"This acquisition marks the entry into an exciting gold exploration opportunity in Brazil," said Brian McMaster, Jangada’s Executive Chairman, in the statement. The company has committed to solely funding the first £4 million of exploration expenditures.
The project is located in a region with an estimated 7-10 million ounces of historical gold production and over 30 years of continuous artisanal mining activity. Metallurgical tests have shown recovery rates of 80.4% for saprolitic ore and 86% for sulphide ore.
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